RTX CORP (RTX)
US75513E1010 - Common Stock
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. RTX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RTX had positive earnings in the past year.
In the past year RTX had a positive cash flow from operations.
RTX had positive earnings in 4 of the past 5 years.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
RTX has a Return On Assets of 2.86%. This is comparable to the rest of the industry: RTX outperforms 50.77% of its industry peers.
With a decent Return On Equity value of 7.72%, RTX is doing good in the industry, outperforming 63.08% of the companies in the same industry.
RTX's Return On Invested Capital of 4.82% is in line compared to the rest of the industry. RTX outperforms 52.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 7.71%.
The 3 year average ROIC (3.43%) for RTX is below the current ROIC(4.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROIC | 4.82% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
1.3 Margins
RTX has a better Profit Margin (5.97%) than 63.08% of its industry peers.
RTX's Profit Margin has declined in the last couple of years.
The Operating Margin of RTX (7.85%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
RTX's Gross Margin of 19.21% is on the low side compared to the rest of the industry. RTX is outperformed by 60.00% of its industry peers.
RTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% |
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
Compared to 1 year ago, RTX has less shares outstanding
The number of shares outstanding for RTX has been increased compared to 5 years ago.
Compared to 1 year ago, RTX has a worse debt to assets ratio.
2.2 Solvency
RTX has an Altman-Z score of 1.98. This is not the best score and indicates that RTX is in the grey zone with still only limited risk for bankruptcy at the moment.
RTX has a worse Altman-Z score (1.98) than 61.54% of its industry peers.
RTX has a debt to FCF ratio of 5.79. This is a neutral value as RTX would need 5.79 years to pay back of all of its debts.
RTX has a better Debt to FCF ratio (5.79) than 70.77% of its industry peers.
RTX has a Debt/Equity ratio of 0.64. This is a neutral value indicating RTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, RTX perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.56
WACC8.6%
2.3 Liquidity
RTX has a Current Ratio of 0.99. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RTX (0.99) is worse than 81.54% of its industry peers.
A Quick Ratio of 0.73 indicates that RTX may have some problems paying its short term obligations.
The Quick ratio of RTX (0.73) is worse than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.15% over the past year.
Measured over the past years, RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.90% on average per year.
RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.82%.
Measured over the past years, RTX shows a quite strong growth in Revenue. The Revenue has been growing by 14.71% on average per year.
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%16%
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%6%
3.2 Future
RTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.29% yearly.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y11.49%
EPS Next 2Y10.55%
EPS Next 3Y10.89%
EPS Next 5Y4.29%
Revenue Next Year7.52%
Revenue Next 2Y6.8%
Revenue Next 3Y6.48%
Revenue Next 5Y4.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.95, RTX is valued on the expensive side.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. RTX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.53, RTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RTX to the average of the S&P500 Index (23.82), we can say RTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than 64.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RTX is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.02 | ||
| EV/EBITDA | 18.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.91
PEG (5Y)N/A
EPS Next 2Y10.55%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, RTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.49, RTX pays a better dividend. On top of this RTX pays more dividend than 93.85% of the companies listed in the same industry.
RTX's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of RTX decreases each year by -2.37%.
RTX has been paying a dividend for at least 10 years, so it has a reliable track record.
RTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.37%
Div Incr Years30
Div Non Decr Years33
5.3 Sustainability
67.44% of the earnings are spent on dividend by RTX. This is not a sustainable payout ratio.
DP67.44%
EPS Next 2Y10.55%
EPS Next 3Y10.89%
RTX CORP
NYSE:RTX (11/21/2024, 8:04:00 PM)
Premarket: 120.94 +0.41 (+0.34%)120.53
+1.38 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap160.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y
EPS Q2Q%
EPS Next Y11.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y